Attorneys seek pretrial delays in Schultz suit against Sonics

By GREG JOHNS, P-I REPORTER

Published 10:00 pm, Tuesday, June 10, 2008

Lawyers for both sides in Howard Schultz's lawsuit against the Sonics' Oklahoma City ownership group have asked the judge to delay pretrial hearings until after the city's court case against the team concludes. The latter trial begins Monday and ends June 26.

U.S. District Court Judge Marsha Pechman, who is overseeing both trials, originally set a series of June deadlines for the two groups to hold their Federal Rule of Civic Procedures conference, file initial disclosures and submit a joint status report and discovery plan.

Attorneys for Schultz and the Sonics submitted a joint order Tuesday asking Pechman to push back the schedule so the filing deadlines will occur after the first trial wraps up.

The new requested dates are July 11 for the FRCP conference, July 18 for disclosures and July 25 for the joint status report. Pechman would then set a trial date after hearing arguments from each party.

Schultz, the former chairman of a 58-member Basketball Club of Seattle ownership group, has filed suit seeking to rescind the 2006 sale of the team to Clay Bennett's partnership on the basis of fraud and breach of contract.

Meanwhile, Richard Yarmuth, the attorney representing Schultz, sent a letter last week to Oklahoma City's representatives suggesting the city should proceed only at its own risk with efforts to upgrade the Ford Center and build a new practice facility until the legal matter is settled.

Wiley Williams, Oklahoma City's assistant municipal counselor, had sent a letter to Yarmuth on May 8 indicating his city would take legal action if the Sonics didn't honor the Ford Center lease agreement Bennett has already signed, even if control of the team ultimately is taken away by Schultz's suit.

Yarmuth responded to that with his own firmly worded letter stating that Oklahoma City has entered into contracts with Bennett's group, not anyone else.

"To put it simply, your issues are with Clay Bennett and his group, not the BCOS," Yarmuth wrote.

The Seattle attorney pointed out that Oklahoma City's contracts with Bennett aren't in effect until either the Sonics' lease at KeyArena expires on July 1, 2010, or when the Oklahoma ownership group resolves its lease litigation with the city of Seattle.

Any expenses incurred by Oklahoma City prior to the settlement of the two ongoing lawsuits in Seattle are done so at the city's own risk, Yarmuth said.

Yarmuth indicated the Oklahoma City leaders have three choices: wait until the lawsuits are resolved before spending public money on their projects, voluntarily spending money on the projects knowing they might not ultimately be used by the Sonics, or asking Bennett's group to guarantee it will cover the costs and "indemnify" the city for any expenditures accrued if the team doesn't move to the Ford Center.

"While Oklahoma City may be eager to begin improvements and construction of its sports facilities, the City has no existing obligation in this regard and cannot expect to hold anyone else responsible for the City's choice if the City's choice turns out to be wrong," Yarmuth wrote.

Yarmuth said both cities have been "put in this unfortunate position" by the actions of Bennett's ownership group and wished Oklahoma City well in its pursuits of an NBA franchise.

"But a fraud was committed in Seattle," Yarmuth wrote, "and it is our belief that the fruits of that deception should not result in Oklahoma City being the future home of the Sonics -- Seattle's professional basketball team."